European energy markets from natural gas to carbon permits jumped to records early on Tuesday, on signs that the shortage will only get worse just as the winter season starts.
Dutch front-month natural gas futures surged 11.6%, while carbon futures jumped 2.2%. German electricity for next year also jumped to a new high. Prices have jumped this month as utilities snap up supplies of fossil fuels to keep their power plants going.
“Europe’s supply-demand balance will remain unusually tight heading into the winter, adding further price pressure to a market already at record highs,” BloombergNEF analysts wrote in a report published on Tuesday.
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